The result is that student loans have become a rare way for the federal government to generate revenue, making $66 billion in profits off them between 2007-2012. Warren told The Daily Beast that she is discussing legislation with colleagues that would allow students to refinance their federal loans at rates currently offered to new borrowers. The legislation will be introduced in the coming weeks as Warren continues to work with other senators from both parties on the exact language.

Warren has long been working to reduce the $1.2 trillion in student loan debt currently held by Americans, seeing it as deeply problematic that the federal government makes a huge profit on student loans. In her opinion that “does not reflect our values” and presents a threat to the economic recovery. Warren cited a recent report that cited student borrowing as hurting the economy because the debt overhang kept many purchasing cars or houses…

Warren’s proposed bill seems to encapsulate the free-market principles underlying the recent student loan compromise. After all, if the rates at which students can borrow float freely, just like interest rates for anything, else it seems logical that students should be able to refinance freely as well. But the problem is that this costs money and raising revenue is not exactly in fashion in Washington right now. In the mean time, the federal government is projected to make $185 billion in profits over the next ten years from student loans.